Non-Resident Tax in Australia: Rules, Rates and Filing

If you are an expat, temporary visa holder, foreign property owner, or Australian living overseas, understanding how non-resident tax works in Australia can help you avoid filing mistakes and unexpected tax bills. Tax residency is not the same as visa status or citizenship, so the rules that apply depend on your individual tax status and the Australian income or assets you still have. You may still need to report income from work, property, investments, or other Australian sources even if you now live abroad. This guide explains how residency tests, tax rates, filing requirements, Medicare rules, and other common non-resident tax issues work in practice.

This guide is for general information only and does not constitute tax, legal, or financial advice. Tax residency depends on your individual circumstances, so confirm the latest rules with the Australian Taxation Office and seek advice from a registered Australian tax agent if your case is complex.

Key takeaways

• Australian resident: generally taxed on worldwide income, usually has access to the resident tax-free threshold, and usually pays the Medicare levy.
• Non-resident: generally taxed on Australian-sourced income only, does not get the resident tax-free threshold, and is generally exempt from the Medicare levy.
• Temporary resident: can still be an Australian resident for tax purposes, but special rules can limit the Australian tax treatment of foreign income and some capital gains. Threshold and Medicare treatment depend on the person’s tax status and period of residence.
• Working holiday maker: holders of subclass 417 or 462 visas can be subject to special working holiday maker rates, including 15% on the first AUD 45,000 of working holiday maker income for 2025–26.
• Filing: the standard self-lodgment deadline is usually 31 October. If you use a registered tax agent, your deadline can be later depending on your circumstances and when you engage them.

For broader context, see The tax system in Australia: A complete guide for expats; below, we cover the ATO residency tests, income reporting, 2025–26 non-resident rates, filing steps, Medicare and study-loan issues, and property-sale withholding.

Who counts as a non-resident for tax purposes?

Australian tax residency is decided under ATO tests, not by your passport, visa, or where you casually say you live. That is why someone on a temporary visa can still be a resident for tax purposes, while an Australian citizen living overseas can become a non-resident.

A common question is whether leaving Australia automatically changes your status. It does not. If you keep strong ties here, such as a home, immediate family, job links, or an intention to return after a short period, you may still be treated as an Australian resident for tax purposes.

You may still be treated as an Australian resident if you:

• leave for a short or clearly temporary assignment
• keep a home available to you in Australia
• keep your spouse or children based mainly in Australia
• keep strong financial and living ties here, even while working overseas

For example, an Australian who moves to London for one year but keeps their Sydney home, leaves their family in Australia, and plans to return may still be resident for tax purposes. The ATO looks at the whole picture rather than one fact on its own.

How the ATO residency tests apply in practice

• Resides test: looks at where you really live day to day, including your habits, family life, work, and social ties.
• Domicile test: if your legal permanent home is Australia, you may still be resident unless your permanent place of abode is clearly outside Australia.
• 183-day test: if you are in Australia for more than half the tax year, you may be resident unless your usual home is elsewhere and you do not intend to live here.
• Commonwealth superannuation test: mainly covers certain Australian Government employees working overseas and their families.

If your situation is unclear, use the ATO residency guidance and get registered advice for dual-residency or treaty cases. That is especially important if two countries may both claim you as a tax resident.

What income do non-residents pay tax on?

If you are a non-resident for tax purposes, you generally pay Australian tax on income with an Australian source. In practice, that usually means income connected to work, assets, or payments arising in Australia, not your full worldwide income.

For many expats, the real issue is the mix of income streams. If you now live overseas but still own a rental in Brisbane, do freelance work physically in Australia, or receive an Australian pension, you may still have an Australian filing obligation even though you no longer live here full time.

Australian-sourced income for non-residents often includes:

• wages or salary earned for work done in Australia
• rental income from Australian property
• Australian pensions and annuities
• capital gains on taxable Australian property
• some business income connected to Australia
• some investment income, depending on whether withholding tax has already settled the liability

One common mistake is assuming all Australian bank or investment income must be declared in a return. In some cases, withholding tax deducted at source is the final tax, so that income may not go back into your return.

What income is usually excluded or final-taxed?

Foreign income is generally outside the scope of Australian tax for non-residents. However, that does not mean you can ignore all overseas reporting, because special rules can still apply if you have HELP, VSL, or AASL debt.

Income that is often excluded from a non-resident tax return, if the right withholding has already been deducted, includes:

• Australian bank interest
• some unfranked dividends
• some royalties
• foreign income earned outside Australia

Avoid absolute assumptions here. If tax was not withheld correctly, or if a treaty changes the result, the treatment may differ, so verify the final position with the ATO or a registered tax agent.

Non-resident tax rates in Australia for 2025–26

For the 2025–26 income year, foreign residents do not get the tax-free threshold. That means Australian tax starts from the first dollar of taxable Australian income, which is why getting your residency status right matters before you estimate what you owe.

The ATO foreign resident tax rates for 2025–26 are:

Taxable income	Tax rate	Tax on this income
AUD 0 to AUD 135,000	30%	30 cents for each AUD 1
AUD 135,001 to AUD 190,000	37%	AUD 40,500 plus 37 cents for each AUD 1 over AUD 135,000
AUD 190,001 and over	45%	AUD 60,850 plus 45 cents for each AUD 1 over AUD 190,000

These rates apply to the 2025–26 income year and may change for later years. Check the current ATO table before lodging.

Part-year changes can work differently. If you were resident for part of the year and non-resident for the rest, your return can involve pro rata treatment and mixed rules, so check the live ATO position before filing.

How temporary residents and working holiday makers are taxed

Temporary residents and working holiday makers are often confused with non-residents, but they are not the same status. A temporary resident can still be an Australian resident for tax purposes, while a working holiday maker may be taxed under a separate rate table tied to visa class and income type.

This matters because temporary residents can receive special treatment on most foreign income and capital gains on non-taxable Australian property, while working holiday makers generally face their own rates on working holiday maker income. If you are on a temporary visa and living in Australia in an ongoing way, this section may fit better than the standard non-resident rules.

In practice:

• Temporary resident: usually declares Australian income and capital gains on taxable Australian property, but most foreign income is not taxed in Australia.
• Working holiday maker: usually uses the special working holiday maker rates, with 15% on the first AUD 45,000 of working holiday maker income for 2025–26. Different treatment can apply to some Australian tax residents covered by a non-discrimination clause in an applicable tax treaty.
• Non-resident: usually pays non-resident rates on Australian-sourced income, with no tax-free threshold.
• Resident for tax purposes: usually pays tax on worldwide income, unless a special temporary resident rule applies.

If you are a temporary resident leaving Australia, another practical issue is superannuation. You may be able to claim a Departing Australia Superannuation Payment after you leave, but it is easier to gather the relevant documents before departure.

How to file a non-resident tax return in Australia

If you are not sure whether you need to lodge, the key question is whether you still had Australian-sourced income or another ongoing Australian obligation for the year. For a wider look at the filing process, see Filing your income tax in Australia.

If you are still in Australia but planning to leave, set up myGov, check your contact details, save key records, and keep usable payment details for any refund or follow-up. That can make later administration easier from overseas.

If you need to move money into AUD to pay an Australian tax bill from overseas, a Wise account can be one money-management option for eligible customers. Wise is a money transfer provider, not a bank, and it does not provide tax advice or file tax returns.

Documents, deadlines and late-lodgment risks

Use this quick checklist before you lodge:

• Tax year: 1 July to 30 June.
• Standard self-lodgment deadline: 31 October.
• Registered tax agent deadline: often later, depending on your circumstances and when you engage them.
• Key documents: TFN, payment summaries, rental records, withholding details, bank statements, and any property sale papers.
• If filing overseas: make sure your myGov sign-in works and your contact details are current.
• Main risk: pre-filled data may be incomplete, so check every income stream yourself.

The risk is assuming silence means compliance. Late lodgment can lead to penalties and interest, and missing property or investment records can cause bigger problems later.

Common expat tax traps: Medicare, HELP, CGT and tax treaties

Medicare levy: Non-residents are generally exempt from the Medicare levy, but mixed-year cases can be more complex. If your status changed during the year, or you had dependants with different positions, check how to claim the exemption in the return rather than assuming it will apply automatically.

HELP and other study loans: Moving overseas does not necessarily end your study-loan reporting. If you have HELP, VSL, or AASL debt, overseas reporting can still apply, so do not assume foreign income is irrelevant once you become non-resident.

Tax treaties: A tax treaty can affect which country taxes certain income first, or how withholding works on items such as dividends, interest, or pensions. The answer depends on both the country and the type of income.

Capital gains: Becoming a non-resident can change how Australian property is taxed. Foreign residents are generally only subject to CGT on taxable Australian property, but property sales can still trigger withholding and special rules around the former main residence exemption. For a broader look at ownership costs and property taxes, see Property taxes in Australia: is it expensive to buy property?

Property sales and foreign resident capital gains withholding

Foreign Resident Capital Gains Withholding, or FRCGW, is a withholding rule that can apply when Australian property is sold. It is designed to collect tax upfront from some property sales, but the amount withheld is not necessarily the same as the seller’s final Australian tax bill.

If you are selling Australian property while overseas, check:

• whether the buyer must withhold part of the sale price at settlement
• whether you need a clearance certificate or variation
• whether the withholding amount matches your likely final tax position
• whether state charges, property tax, or sale timing create extra issues

From 1 January 2025, the general FRCGW withholding rate is 15% of the property value unless an exception or variation applies. Because the stakes are high, verify the latest ATO property-sale guidance and get registered advice before exchange or settlement. For the wider sale process, see Selling property in Australia.

Using a Wise account to manage tax payments from abroad

If you live overseas but still need to pay Australian tax, strata bills, insurance, or property costs, you may need to move money into AUD. Review the payment instructions, exchange rate, and transfer fees before sending money, and keep records of the transaction.

A Wise account can be used by eligible customers to hold and convert supported currencies and send money to Australia. If you also need a local account setup, see How to open a bank account in Australia.

Conclusion

Non-resident tax in Australia starts with getting your tax residency status right, because visa status or citizenship alone does not decide the result. Once your status is clearer, focus on Australian-sourced income, the rate table that applies, filing deadlines, and any special rules for Medicare, study loans, treaties, or property. Keep your records organised and check current ATO guidance before lodging, especially if your residency changed during the year or more than one country may tax the same income.

Sources

• Australian Taxation Office: Your tax residency: residency tests, the distinction between tax residency and visa status, and part-year residency guidance, checked on 8 September 2026.
• Australian Taxation Office: Foreign and temporary residents: Australian-sourced income, temporary resident treatment, Medicare levy treatment, withholding treatment, and DASP context, checked on 8 September 2026.
• Australian Taxation Office: Tax rates – foreign resident: 2025–26 foreign resident income tax bands and Medicare levy information, checked on 8 September 2026.
• Australian Taxation Office: Tax rates – working holiday maker: 2025–26 working holiday maker tax bands and visa subclasses 417 and 462, checked on 8 September 2026.
• Australian Taxation Office: Lodge your tax return from outside Australia: the 1 July to 31 October lodgment period, myGov and myTax access, and overseas filing options, checked on 8 September 2026.
• Australian Taxation Office: Overseas obligations when repaying loans: HELP, VSL, and AASL overseas reporting obligations, checked on 8 September 2026.
• Australian Taxation Office: Foreign resident capital gains withholding overview: FRCGW and the 15% withholding rate from 1 January 2025, checked on 8 September 2026.
• Treasury: Income Tax Treaties: Australia’s country-specific income tax treaties and double-taxation framework, checked on 8 September 2026.
• Tax Practitioners Board: Public Register: public register for checking whether an Australian tax agent is registered, checked on 8 September 2026.